I put forward for debate a proposal to change the rate of Value Added Tax.
I propose that a uniform VAT rate be introduced. This rate could be a percentage point lower than the current basic rate, e.g. 17%.
The reduced rate of 8.5% on food should be abolished.
I propose this for two reasons.
1. Reducing the standard VAT rate would have a positive impact on retail prices for most products, as they are currently under a lot of pressure, which would boost consumption.
2. The existence of a reduced rate, which is supposed to keep the prices of basic necessities low, has lost its purpose, since it mainly produces higher profits for grocery retailers, who in any case set their prices in accordance with the capabilities of the market and the elasticity of demand, which is extremely low for products that fall into this category.